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Business and Franchises

What are the steps to follow before developing a business in the US?

We have a team of allies who will advise you step by step and in an ethical and responsible manner, so that you fulfill your dream of starting your business in the USA.

1. Market research: Through market research you will know if there is an opportunity to turn your idea into a successful business. It is a way to gather information about potential clients and businesses that are already operating in your area. Use that information to find you a competitive advantage for your company.

2. Business Plan: It is a roadmap of how to structure, operate and grow your new company. It will help you convince people that working with you (or investing in your company) is a smart choice.

3. Financing your business: Your business plan will help you calculate how much money you will need to start your business. If you don’t have that amount now, you will need to raise funds or borrow the principal. Fortunately, there are more ways than ever to find the capital you need.

4. Choose the location of your business: One of the most important decisions you will make is the location of your business. Whether you are establishing a business with a physical presence or launching an online store, the decisions you make could affect your taxes, legal obligations, and profits.

5. Choose a business structure: The legal structure you choose for your business will influence your business registration requirements, the amount of taxes you pay, and your personal liability.

6. Choose the name of your company: It is not easy to choose the perfect name. I would like one that reflects your brand and captures your spirit. You’ll also want to verify that the name you decided on is not already being used by someone.

7. Company registration: Once you have chosen the ideal name for your company, it is time to legalize it and protect your brand. If you are doing business under a name other than your personal name, you will need to register with the federal government and perhaps your state government as well.

8. Federal and State Tax Identification: You will use your Employer Identification Number (EIN) in important actions to start and grow your business, such as opening a bank account and paying taxes. It is like a social security number for your business. Some states also require you to obtain a tax ID. But this is not the case in Florida.

9. Licenses and Permits: Always follow the rules to keep your business running smoothly. The licenses and permits your business needs vary with the industry in which it operates, state, location, and other factors.

10. Open a business bank account: A small business checking account can help you handle legal, tax, and day-to-day issues. The good news is, it’s easy to open one if you have the correct records and documents ready.

NOTE: Information taken from the U.S Small Business Administration page:

https://www.sba.gov/business-guide/10-pasos-para-inicial-su-empresa/?lang=es

Steps to acquire a franchise in the united states

The research and analysis service is important to find the right franchise. It is also important for clients to understand the complete process and steps required to become a franchisee. Therefore, we have outlined on the following pages, the typical 8 process needed during the franchise review process to help the investor make an educated and informed investment decision.

1. Customer profile

Before looking for and analyzing a potential investor franchise, you need to understand your profile, in order to establish the basis from which to analyze potential franchise investments. Important factors to consider are: level of investment, desired participation in the business, industries of interest, return on investment objectives, and desired territory or area to locate, among others. These factors will help the potential franchise investor narrow down their list of potential investment options. Also, if the individual is a foreign citizen seeking to do an EB-5, L-1 or E-2 investor visa, then they will also need to make sure that the franchise has all the required characteristics to qualify them for one of those investor visas. .

2. Presentation and analysis of options

Once the investor’s profile is resolved, you can begin to review the different franchise options that best suit you. At this stage it is important to understand the business in general and decide if it is of interest to them and their family. A relevant question to consider is whether they are really interested in the business. The investor should try to avoid investing in a franchise or industry in which they have no interest. Typically, franchise owners with the greatest passion for their business or industry and who are willing to work closely with the business for the first year or two are the most successful.

3. Interview with the selected franchise

The so-called kick-off meeting is an integral part of the process when deciding which franchise investment is the right one. It would be the first time that a potential franchisee has spoken directly to someone on the franchise team. This first contact is basically an interview for both parties. On the one hand, the potential franchise investor should be looking to understand the business, what would be required of them to run the business on a day-to-day basis, and the investment requirements to get the business up and running. On the other hand, the franchisor is generally looking to find out if the franchisee candidate is qualified. Every franchisor is different although they typically try to see if the potential franchise candidate shares the same characteristics as their more successful franchise owners. Franchisors are selective as they need to ensure that only qualified franchisees enter their franchise system and maintain brand standards. At the end of the day, entering into a franchise agreement should make sense for both the franchisee and the franchisor, as each is committed to a long-term relationship, typically lasting 10 years.

4. Detailed evaluation process

Many franchisors, especially the more established ones, will ask the potential franchise investor to complete a franchise application. The application is typically just a few pages containing a series of questions about the applicant’s profile and personal finances. The franchisor requests this information to ensure that the potential franchisee meets the minimum requirements. This saves both the time of the potential franchisee and franchisor in verifying that the requirements are met before moving forward in the process.

5. Signature of the agreement with the franchisee (FDD)

Once the franchisor approves the franchise application, they will normally send the applicant the franchise disclosure document, or also known as FDD. The FDD is a legal document that is presented to prospective franchise buyers in the pre-sale disclosure process. Provide relevant information about the franchisor and the franchise system to the franchisee. As this type of business is regulated by the Federal Trade Commission (FTC), they are required to have this document to present to potential franchisees.

Each prospective franchisee has the opportunity to review the document for a minimum of 14 days before signing. The applicant will have time to communicate with the franchisor and ask any questions they may have regarding the document. We recommend to all our clients that a specialized lawyer review the document to fully understand it before

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